IDEF vs. DFEN
IDEF (iShares Defense Industrials Active ETF) and DFEN (Direxion Daily Aerospace & Defense Bull 3X Shares) are both exchange-traded funds - IDEF is a Aerospace & Defense fund actively managed by iShares, while DFEN is a Leveraged Equities fund tracking the Dow Jones U.S. Select Aerospace & Defense Index (300%). IDEF is actively managed, while DFEN is passively managed. Over the past year, IDEF returned 21.86% vs 59.57% for DFEN. Their correlation of 0.84 suggests significant overlap in exposure. IDEF charges 0.55%/yr vs 0.99%/yr for DFEN.
Performance
IDEF vs. DFEN - Performance Comparison
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Returns By Period
In the year-to-date period, IDEF achieves a 4.74% return, which is significantly higher than DFEN's 2.17% return.
IDEF
- 1D
- -2.54%
- 1M
- -2.65%
- YTD
- 4.74%
- 6M
- 9.45%
- 1Y
- 21.86%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
DFEN
- 1D
- -4.54%
- 1M
- 12.97%
- YTD
- 2.17%
- 6M
- 21.41%
- 1Y
- 59.57%
- 3Y*
- 63.19%
- 5Y*
- 26.54%
- 10Y*
- —
IDEF vs. DFEN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
IDEF iShares Defense Industrials Active ETF | 4.74% | 23.05% |
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares | 2.17% | 80.19% |
Correlation
The correlation between IDEF and DFEN is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since May 22, 2025 | 0.84 |
The correlation between IDEF and DFEN has been stable across timeframes, ranging from 0.84 to 0.84 - a consistent structural relationship.
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Return for Risk
IDEF vs. DFEN — Risk / Return Rank
IDEF
DFEN
IDEF vs. DFEN - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Defense Industrials Active ETF (IDEF) and Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| IDEF | DFEN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.09 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.19 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.50 | 1.43 | +0.07 |
| Martin ratioReturn relative to average drawdown | 3.90 | 3.44 | +0.46 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| IDEF | DFEN | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.04 | 0.95 | +0.09 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.44 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.33 | 0.21 | +1.12 |
Drawdowns
IDEF vs. DFEN - Drawdown Comparison
The maximum IDEF drawdown since its inception was -14.63%, smaller than the maximum DFEN drawdown of -91.36%. Use the drawdown chart below to compare losses from any high point for IDEF and DFEN.
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Drawdown Indicators
| IDEF | DFEN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.63% | -91.36% | +76.73% |
Max Drawdown (1Y)Largest decline over 1 year | -14.63% | -41.75% | +27.12% |
Max Drawdown (3Y)Largest decline over 3 years | — | -43.13% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -56.23% | — |
Current DrawdownCurrent decline from peak | -12.31% | -33.04% | +20.73% |
Average DrawdownAverage peak-to-trough decline | -3.90% | -45.27% | +41.37% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.61% | 17.36% | -11.75% |
Volatility
IDEF vs. DFEN - Volatility Comparison
The current volatility for iShares Defense Industrials Active ETF (IDEF) is 7.87%, while Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) has a volatility of 22.35%. This indicates that IDEF experiences smaller price fluctuations and is considered to be less risky than DFEN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IDEF | DFEN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.87% | 22.35% | -14.48% |
Volatility (6M)Calculated over the trailing 6-month period | 17.98% | 53.06% | -35.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.15% | 63.21% | -42.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.07% | 60.16% | -39.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.07% | 71.48% | -50.41% |
IDEF vs. DFEN - Expense Ratio Comparison
IDEF has a 0.55% expense ratio, which is lower than DFEN's 0.99% expense ratio.
Dividends
IDEF vs. DFEN - Dividend Comparison
IDEF's dividend yield for the trailing twelve months is around 0.16%, less than DFEN's 8.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
DFEN Direxion Daily Aerospace & Defense Bull 3X Shares | 8.74% | 8.89% | 14.12% | 1.13% | 0.46% | 1.89% | 0.48% | 0.50% | 1.07% | 1.50% |
IDEF iShares Defense Industrials Active ETF | 0.16% | 0.17% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
IDEF and DFEN have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFEN has higher volatility (22.35%) compared to IDEF (7.87%). In terms of maximum drawdown, IDEF dropped -14.63% vs DFEN's -91.36%.
On 1-year performance, DFEN leads with 59.57% vs 21.86% for IDEF. On fees, IDEF is cheaper at 0.55% per year. On volatility, IDEF has been the lower-risk option at 7.87%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, DFEN has performed better with a 59.57% return vs 21.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IDEF is cheaper with a 0.55% expense ratio, compared with 0.99% for DFEN.
DFEN has the higher dividend yield at 8.74%, compared with 0.16% for IDEF.
IDEF is categorized as Aerospace & Defense, while DFEN is Leveraged Equities. They also come from different issuers: iShares and Direxion. Their fees differ too: 0.55% for IDEF and 0.99% for DFEN.
IDEF currently has the higher Sharpe Ratio (1.04 vs 0.95), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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